Is it correct that I do not have to pay Medicare levy if I am not Australian?

Generally speaking, it is correct. If you live in Australia, but are not eligible for Medicare benefit during all, or part of, any financial year, you can claim an exemption from paying the levy. To claim the exemption on your tax return, you must apply for a Medicare levy exemption certificate.

You may not be eligible for the exemption if you:

  • hold a permanent resident visa or have applied for a permanent resident visa
  • were a resident of the United Kingdom, the Republic of Ireland, Italy, Malta, Sweden, the Netherlands, Finland, Belgium, New Zealand, Norway or Slovenia before entering Australia maintain a dependant or another person who was eligible for Medicare
  • are an Australian citizen living overseas for less than five years

We can also prepare a Medicare levy exemption certificate for a small fee.